Do you need some tips for your sales strategy? Check out the following techniques to increase sales!
6 proven techniques to increase sales for an FMCG business
Sales of an FMCG business are similar to a see-saw, where both of the sides need to be balanced to maintain equilibrium. In this case, the volume and the price are the sides that need to be evened out to meet the desired sales target.
Whether you sell kitchen, electronic or any other type of household appliances, for example, the basics remain the same. Even the market positioning of the product does not interfere with the basics of the model.
Here are some steps which, if taken correctly, you could increase sales and improve cash flow within your venture. At the end of the day, cash is what matters.
1. Define dealer margins
If you are a new market entrant and want to promote a brand/product, you should define the margins of dealers, who would buy your product with cash or credit to distribute it further.
Keep in mind that they might want to offer a discount to their customers, so you need to consider this in your pricing strategy. To encourage a larger purchase by dealers, you might want to offer them a quantity discount.
Additionally, you could offer a 2% commission in the form of cash or products after a dealer reaches a certain threshold in terms of revenue.
2. Maintain your supply
Dealers would only be interested in partner with you if you have a well-established supply chain and inventory in place since they would risk their reputation if they cannot deliver a product to their clients.
3. Refer customers
Invite other B2B companies to refer companies to you in return for a commission. This way you will be able to boost your credibility as a reliable partner that can handle large volumes of transactions. This approach would also bring additional revenue for your company.
4. Share advertisement costs
Whatever the medium of advertisement is above-the-line (ATL) or below-the-line (BTL), the company should share expenses with their respective dealer as they are the ones promoting the brand.
A yearly allowance should be given to the dealers according to the percentage of their sales.
5. Provide after-sales service
The most important backbone of any business is the reliability, approachability, and convenience of after-sale services, warranty claims and possible refunds.
A company must be easily accessible and must reply immediately to any queries, especially the adverse ones. One happy customer would bring a few more happy customers, while one unsatisfied customer would spook lots of potential customers away.
6. Establish relationships within your industry
Nurturing long-term relationships with suppliers pays off big time.
If you have healthy partnerships with them, they will support you in the most difficult times as since a network of dealers in various regions allows you diversify risks and switch focus between regions in case one of them faces an economic downturn.
Have you tried any of the tactics mentioned above in your business projects? How did you find them? And what tactics do you use when you make a sale? Let us know by leaving a comment below.